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1. Before the Civil War, the South graded with the North and with England. It sold cotton and bought manufactured goods and food. During the war, one of Lincoln's first actions was to blockade the ports, which prevented this trade. The South had to increase its production of munitions and food.
In what did the South have a comparative advantage?
Did the Civil War change any opportunity costs in the South? Did the opportunity cost of everything rise? Or did items cost less?
2. The demand for illegal drugs is inelastic. Much of the expenditure on illegal drugs comes from crime. Assuming these statements to be correct,
How will a successful campaign that decreases the supply of drugs influence the price of drugs and the amount spent on them?
What will happen to the amount of crime?
Illustrate what is the most effective process of decreasing the quantity of drugs consumed and decreasing the amount of drug-related crime?
Find out the aggregate economic effects of the combination of the shock to the economy and the government's response to it.
Graph the following statements using demand curves only, elucidate how whether there is a change in demand
Given this information, evaluate the following statement: Airlines could have the same effect on demand by eliminating their frequent flyer programs and simply lowering the average ticket price by 10 percent.
A bank manager advises all of his loan officers that the average cost of funds for the bank over the past year
A business cycle fact is that real wages are pro-cyclical. Using the classical labour market as we have all semester, show and explain how the classical economists explained this business cycle fact.
Explain how does the U.S. Government correct for this apparent market failure.
Illustrate what are the monopolist's profit-maximizing price and total output.
Two Processes are under consideration for a certain production. Process A needs acquisition of a new machine which is estimated
For every firm in group B , long-run ATC curve is U-shaped and intersects the long-run MC curve when ATC = 10 and output is 6.
The rapid globalization of capital markets enables persons also institutions based in one nation to invest in corporations based elsewhere with relative ease.
Describe the free trade equilibrium. Then compute and graph the following effects of an import quota that limits imports to 100 bags.
Assume that private schools want to maximize profits and that the market for private schools is perfectly competitive.
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